Microsoft (MSFT) / Bill Gates

[winston]

not vested

Microsoft Corporation - Stock Analyst Research
Target Price* US 480.00
Recommendation ACCUMULATE

Microsoft Corp – Strong earnings despite uncertainty

3Q25 revenue/PATMI met our expectations at 74%/74% of our FY25e forecasts.

Total revenue grew 13% YoY, driven by strong demand for Azure and cloud services.

For 4Q25e, Microsoft expects total revenue to grow by 14% YoY to US$73.7bn, driven by 34.5% YoY rise in Azure revenue and 14% YoY increase in Office 365 commercial cloud revenue.

We downgrade to ACCUMULATE from BUY due to recent price performance.

Our DCF target price of US$480 (WACC 7.2%, g 4.5%) and FY25e estimates remain unchanged.

We believe Microsoft is well-positioned to benefit from the rising demand for large AI models, boosting Azure’s appeal and driving incremental revenue through Copilot AI tools.

Microsoft remains less impacted by tariffs, as its strong growth is driven by cloud-based offerings and supported by a broad base of enterprise customers.

Source: Phillips

https://www.poems.com.sg/stock-research/MSFT/